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Requisition of Resources Act 1985 — PART 4: RIGHTS TO AND ASSESSMENT OF COMPENSATION

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Part of a comprehensive analysis of the Requisition of Resources Act 1985

All Parts in This Series

  1. PART 1
  2. PART 2
  3. PART 3
  4. PART 4 (this article)
  5. PART 5
  6. PART 6

Key Provisions and Their Purpose in the Requisition of Resources Act 1985

The Requisition of Resources Act 1985 establishes a comprehensive framework for the requisition or acquisition of property, land, goods, and services by the government, ensuring that affected parties receive fair compensation. The key provisions within this Act serve to balance the needs of the state with the rights of individuals and entities whose resources are requisitioned. Below is an authoritative analysis of these provisions, their purposes, and the rationale behind their inclusion.

Section 18: Payment of Compensation from Parliamentary Funds

"Compensation assessed in accordance with this Act must be paid out of moneys provided by Parliament in respect of the possession, use or occupation of land, the requisition or acquisition of the property, or the requisition of the service, or the rendering of any service or the performance of any work by any person." — Section 18(1), Requisition of Resources Act 1985

Verify Section 18 in source document →

This provision ensures that compensation obligations arising under the Act are funded by public monies allocated by Parliament. The purpose is to provide a clear financial mechanism guaranteeing that individuals or entities affected by requisition receive due payment without delay or dispute over funding sources. It reflects the principle that the state, when exercising its powers to requisition, must bear the financial burden of such actions.

Section 19: Compensation for Possession, Use, or Occupation of Land

"Compensation payable for possession, use or occupation of land includes rent, damage repair costs, and expenses incurred." — Section 19(1), Requisition of Resources Act 1985

Verify Section 19 in source document →

This section defines the scope of compensation related to land requisition, covering not only the rental value but also costs for repairing damage and other expenses incurred due to possession or occupation by the government. The rationale is to restore the affected party to the financial position they would have been in had the requisition not occurred, thereby preventing unjust enrichment of the state at the expense of private owners.

Section 20: Compensation for Work Done on Land

"Compensation for doing work on land is payable if the annual value is diminished, with provisions for restoration and lump sum payment." — Section 20, Requisition of Resources Act 1985

Verify Section 20 in source document →

This provision addresses situations where the government performs work on land that may reduce its annual rental value. It ensures that the landowner is compensated for any diminution in value and provides mechanisms for restoration or lump sum payments. The purpose is to protect landowners from losses caused by government activities and to encourage fair dealings by requiring restoration where feasible.

Section 21: Compensation for Requisition or Acquisition of Vehicles, Vessels, and Aircraft

"Compensation for requisition or acquisition of vehicles, vessels, aircraft, including use, damage, or total loss." — Section 21, Requisition of Resources Act 1985

Verify Section 21 in source document →

This section covers compensation related to movable property such as vehicles, vessels, and aircraft. It accounts for various scenarios including temporary use, damage, or total loss, with "total loss" defined in line with insurance law to include constructive total loss. The inclusion of this provision ensures that owners of such assets are fairly compensated for the full spectrum of potential impacts arising from requisition.

Section 22: Compensation for Taking Space or Accommodation in Ships and Aircraft

"Compensation for taking space or accommodation in ships and aircraft." — Section 22, Requisition of Resources Act 1985

Verify Section 22 in source document →

This provision recognises that requisition may involve not only the physical acquisition of vessels or aircraft but also the use of their space or accommodation. Compensation is therefore payable for such use, reflecting the principle that any deprivation or occupation of property, even partial, warrants remuneration.

Section 23: Compensation for Requisition or Acquisition of Goods Other Than Vessels, Vehicles, or Aircraft

"Compensation based on reasonable sale price or cost and profit limits." — Section 23, Requisition of Resources Act 1985

Verify Section 23 in source document →

This section governs compensation for goods requisitioned that do not fall under the categories of vessels, vehicles, or aircraft. It sets out valuation principles based on reasonable sale price or cost, with limits on profit to prevent excessive claims. The purpose is to ensure equitable compensation that reflects market realities while safeguarding public funds.

Section 24: Apportionment of Compensation Under Hire-Purchase Agreements

"Provisions for compensation apportionment where property is under hire-purchase agreements." — Section 24, Requisition of Resources Act 1985

Verify Section 24 in source document →

This provision recognises the complexity of ownership in hire-purchase arrangements, ensuring that compensation is fairly apportioned between owners and financiers. It prevents disputes by clarifying rights and obligations, thereby facilitating smooth compensation processes.

Section 25: Compensation Deemed Included in Mortgages, Pledges, or Liens

"Compensation paid to owner is deemed comprised in any mortgage, pledge, lien or similar obligation." — Section 25, Requisition of Resources Act 1985

Verify Section 25 in source document →

This section protects the interests of secured creditors by deeming compensation payments to owners as subject to existing financial obligations such as mortgages or liens. The rationale is to maintain the integrity of security interests and prevent unjust enrichment of owners at the expense of creditors.

Section 26: Notification and Compensation Rights for Persons Other Than Owners

"Notification and compensation rights for persons other than owner with interest in property." — Section 26, Requisition of Resources Act 1985

Verify Section 26 in source document →

This provision ensures that individuals or entities with interests in the property other than ownership, such as tenants or lessees, are notified and have rights to compensation. It reflects the principle of fairness by recognising the legitimate interests of all parties affected by requisition.

Section 27: Compensation for Requisition of Services

"Compensation for requisition of services, with rates depending on employment status and reasonable remuneration fixed by competent authority." — Section 27, Requisition of Resources Act 1985

Verify Section 27 in source document →

This section addresses compensation for services requisitioned by the government, differentiating between employees and others, and allowing the competent authority to fix reasonable remuneration. It also incorporates definitions from the Platform Workers Act 2024 to cover modern employment arrangements. The purpose is to ensure fair payment for services rendered involuntarily or under compulsion.

Section 28: Requirements for Receipt and Notification of Damage and Compensation Offers

"Requirements for receipt and notification of damage to property requisitioned or acquired, and claimant's acceptance or dispute of compensation offer." — Section 28, Requisition of Resources Act 1985

Verify Section 28 in source document →

This provision establishes procedural safeguards for damage claims and compensation negotiations, requiring formal notification and documentation. It aims to promote transparency, reduce disputes, and facilitate timely resolution of compensation matters.

Definitions in This Part and Their Significance

Precise definitions are critical for the consistent application of the Act. The following terms are defined to clarify the scope and application of compensation provisions:

"Annual Value" and "Diminution of the Annual Value"

"\"Annual value\", in relation to land, means the rent at which the land might reasonably be expected to let from year to year, if the landlord undertook to bear the costs of the repairs and insurance and the other expenses (if any) necessary to maintain the land in a state to command that rent." — Section 20(9), Requisition of Resources Act 1985

Verify Section 20 in source document →

"\"Diminution of the annual value\", in relation to doing work on land, means the amount by which the annual value of the land is less than it would be if the work had not been done." — Section 20(9), Requisition of Resources Act 1985

Verify Section 20 in source document →

These definitions underpin the calculation of compensation for work done on land, ensuring that compensation reflects realistic rental values after accounting for maintenance costs. They provide an objective basis for assessing loss in value due to government actions.

"Total Loss"

"\"Total loss\" has the same meaning as it has for the purposes of the law relating to insurance, and accordingly is to be construed as including constructive total loss." — Section 21(7), Requisition of Resources Act 1985

Verify Section 21 in source document →

By aligning the definition of "total loss" with insurance law, the Act ensures consistency and clarity in compensation claims involving vehicles, vessels, and aircraft. This prevents ambiguity and facilitates fair valuation of losses.

"\"Platform operator\", \"platform service\", and \"platform worker\" have meanings given by sections 4, 3, and 5(1) respectively of the Platform Workers Act 2024." — Section 27(6), Requisition of Resources Act 1985

Verify Section 27 in source document →

"\"Service\" includes any work carried out or performed for the competent authority." — Section 27(6), Requisition of Resources Act 1985

Verify Section 27 in source document →

These definitions incorporate modern employment concepts from the Platform Workers Act 2024, reflecting the evolving nature of work and ensuring that compensation provisions remain relevant and comprehensive. They clarify who is entitled to compensation when services are requisitioned.

Penalties for Non-Compliance

The text provided does not specify any penalties for non-compliance within this Part of the Requisition of Resources Act 1985. This absence suggests that enforcement mechanisms or penalties may be addressed elsewhere in the Act or under related legislation. The focus of this Part is primarily on compensation rights and procedures.

Cross-References to Other Acts

The Act makes important cross-references to ensure coherence with other legal frameworks:

  • Platform Workers Act 2024: Definitions of "platform operator", "platform service", and "platform worker" are adopted from this Act to address compensation for requisitioned services involving platform-based work arrangements [Section 27(6)].
  • Law Relating to Insurance: The meaning of "total loss" for vehicles, vessels, and aircraft is aligned with insurance law, including the concept of constructive total loss, to standardise compensation assessments [Section 21(7)].

These cross-references ensure that the Requisition of Resources Act 1985 operates in harmony with contemporary legal standards and definitions, promoting clarity and reducing legal uncertainty.

Conclusion

The Requisition of Resources Act 1985 provides a detailed and balanced framework for the requisition or acquisition of various types of property and services by the government. Its key provisions ensure that compensation is fair, transparent, and grounded in objective criteria. The inclusion of precise definitions and cross-references to other legislation reflects a modern and integrated approach to requisition law. While penalties for non-compliance are not specified in this Part, the Act’s emphasis on compensation rights underscores the importance of protecting individuals and entities affected by government requisition.

Sections Covered in This Analysis

  • Section 18(1)
  • Section 19(1)
  • Section 20 (including 20(9))
  • Section 21 (including 21(7))
  • Section 22
  • Section 23
  • Section 24
  • Section 25
  • Section 26
  • Section 27 (including 27(6))
  • Section 28

Source Documents

For the authoritative text, consult SSO.

Written by Sushant Shukla
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